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STRATEGY

Transaction Capital drives organic and acquisitive growth within its divisions by developing specialised capabilities and industry solutions to achieve deep vertical integration within existing market segments, and developing and applying these competencies to create new positions within adjacent or new market segments, thereby strengthening performance and market positioning through in-depth insights from the continuous collection of diverse, accurate and valuable data sets to enable precise and proactive risk management, robust capital management, and effective people practices, all facilitated by a technology-led, flexible and dynamic servicing platform.

ORGANIC

1 GROWTH The core components of Transaction Capital’s strategy

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2

CREDIT RISK A N D C A P I TA L MANAGEMENT

D ATA A N D

3 TECHNOLOGY 4

ACQUISITIVE GROWTH

5 PEOPLE

Develop specialised capabilities and industry solutions to achieve deep vertical integration within existing market segments, and further develop and apply these competencies to create new positions within adjacent and new market segments, thereby driving organic growth.

Judiciously invest equity capital, conservatively leveraged with local and international debt, into accurately assessed asset classes to achieve superior risk-adjusted returns.

Generate in-depth insights from the continuous collection of diverse, accurate and valuable data sets to enable precise decisioning and proactive risk management, and leverage data, analytics and technology within a dynamic servicing platform to drive profitable growth. Target quality assets operating within Transaction Capital’s focused market segments that will enhance its capabilities, and whose business model and value can be enhanced through active management.

Develop, engage and reward employees and executives to engender a high-performance culture.

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STRATEGIC OBJECTIVE ORGANIC GROWTH

Develop specialised capabilities and industry solutions to achieve deep vertical integration within existing market segments, and further develop and apply these capabilities to create new positions within adjacent and new market segments, thereby driving organic growth. To continue driving organic growth, Transaction Capital’s divisions are empowered to: > Continue growing their client base. > Enhance their value proposition by introducing existing clients to new products and services. > Move into adjacent markets and new segments within existing markets where they can apply their specialised capabilities.

Transaction Capital’s divisions are focused on narrow market segments, enabling them to identify, develop and implement highly customised solutions specific to those markets. This level of specialisation enables them to operate in higher-risk market segments. The scale and leading market positions of Transaction Capital’s divisions enable them to strengthen their competitive positions through deepening penetration of products and services within existing (vertical) and complementary (adjacent) market segments.

LOOKING FORWARD SA TAXI

2 016 P R O G R E S S SA TAXI > Established a retail dealership in Midrand, Johannesburg in February 2016, selling new and pre-owned vehicles. A second dealership is being piloted in KwaZulu-Natal and a Polokwane dealership is under consideration. > Acquired and expanded Zebra Cabs, enabling SA Taxi to apply its specialised competencies developed for the minibus taxi industry to the metered taxi industry. > Continued to improve its credit loss ratio and insurance loss ratio, supported by greater efficiencies in its mechanical refurbishment centre and augmented by the establishment of a new auto body repair centre. > Continued strong performance of its insurance business, with most SA Taxi-financed clients choosing to insure with SA Taxi, and continued growth in the number of non-financed clients insured by SA Taxi. > Further enhanced the pre-owned product as a core, profitable component of its product portfolio, by developing refurbishment and retail capabilities to deepen its penetration in the highly liquid pre-owned vehicle market.

TRANSACTION CAPITAL RISK SERVICES (TCRS) > In 91% of its 254 mandates (2015: 180 mandates; up 41%), TCRS continues to be the top or second ranked recoveries agent. Due to this, TCRS enjoys deep penetration into the credit retail and specialist lending segments of its market, and aims to increase revenue from the Tier 1 banks where its penetration has been disproportionately lower. > Rebranding of TCRS and its constituent businesses to leverage off Transaction Capital’s brand equity. This rebranding exercise is the culmination of a two-year journey to integrate all risk services operations under one management team with an overarching strategy, focused on managing risk for all its clients across their customers’ lifecycle. > Transaction Capital Recoveries (TCR) was upgraded in terms of its primary and special servicer ratings to SQ1-(za) and SQ1(za) respectively, with a stable outlook, by Global Credit Ratings Co.

> Maintain market leadership as a provider of finance, insurance, technology and allied services to small- and medium-sized enterprises (SMEs) in the fixed route minibus taxi industry. > Realise further synergies between its specialist capabilities with a specific focus on the dealership channel and pre-owned vehicles. > Leverage telematics data and technology innovations across the minibus and metered taxi businesses. > Build scale in the metered taxi business, with the intention to consolidate, recapitalise, standardise and formalise the existing metered taxi industry.

TCRS > Cognisant of the changes to the legislative environment, which in the medium term may constrain its clients’ ability to extend credit, TCRS is strategically focused on increasing revenue from non-NCA regulated clients, including the outsourced collection of outstanding claims in the public, insurance and telecommunications sectors. > Further drive its co-ordinated go-to-market strategy to access new business from existing clients and identify synergies between its businesses. > Maintain TCR’s highly regarded status on all agency panels.

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LOOKING FORWARD

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STRATEGIC OBJECTIVE CREDIT RISK AND CAPITAL MANAGEMENT

Judiciously invest equity capital, conservatively leveraged with local and international debt, into accurately assessed asset classes to achieve superior risk-adjusted returns.

Transaction Capital is sufficiently capitalised to fund organic growth, to take advantage of opportunities to deploy capital into its existing businesses, and to acquire complementary businesses that can be enhanced by or contribute to its specialist capabilities. In addition, Transaction Capital is conservatively geared with debt capital accessed through diversified funding structures attractive to a broad range of local and international investors, who have an in-depth understanding of the underlying businesses and their asset classes.

2016 PROGRESS

> The non-performing loan ratio continues to improve due to a combination of continued strong collection performance, loans of superior credit quality being originated via SA Taxi’s retail dealership and conservative credit granting criteria, which are continuously enhanced via the analytics applied to SA Taxi's telematics data. > SA Taxi’s credit loss ratio continues to improve. SA Taxi recovers on average 72% of loan value when re-selling repossessed vehicles, as the security value of a minibus taxi is enhanced via SA Taxi’s combined mechanical refurbishment and auto body repair centre; now one of the largest Toyota repair centres in Africa.

SA TAXI

TCRS

With growing concerns of a potential downgrade in South Africa's credit rating, SA Taxi intensified its fundraising activities, raising more than R3.5 billion of debt during the year. It enjoys continued uninterrupted access to both local and international funding pools, with a strong funding pipeline available. Despite the above-mentioned challenge in its operating context, SA Taxi has already fulfilled most of its annual debt requirements for the 2017 financial year:

> Applies its strong balance sheet and extensive data to the selective acquisition of certain of the increased number of non-performing loan portfolios available for purchase from clients who require an immediate recovery against their non-performing loans in this difficult consumer credit market. In total, 13 new portfolios were purchased during the 2016 financial year for R184 million, some of which were negotiated on an exclusive basis and not via the usual competitive auction process.

> Returned to the local listed debt capital markets during August 2016 by tapping its rated and listed securitisation programme, Transsec 2, successfully issuing R513 million of debt. The tap issuance was privately placed with nine investors, three of which were first-time investors, at a weighted average cost of funding of 241 basis points (bps) above three-month JIBAR, which is approximately 100bps lower than SA Taxi’s average cost of funding. > In October 2016, S&P Global performed their annual review of the Transsec 1 structure, upgrading the ratings on the class B notes (from zaAA to zaAA+), class C notes (from zaA to zaA+), and class D notes (from zaBBB- to zaBBB+), and reaffirming the ratings on the class A notes (zaAAA). The improvement in credit ratings correlates to the strong performance of SA Taxi.

> Currently owns 167 principal portfolios valued at R728 million with an asset turnover ratio of 71.1% and estimated remaining collections of R1 313 million. Based on this historical performance, recent successful book acquisitions are expected to deliver positive future performance. > Given its strong cash conversion rate, portfolio acquisitions are funded with internally generated cash flows conservatively leveraged with debt. > Extended services to SMEs to include property and trade financing, in addition to invoice discounting.

TRANSACTION CAPITAL > In line with Transaction Capital’s strategy to diversify its funding structures and instruments, Transaction Capital has established a R2 billion credit-rated and JSE-listed Domestic Note Programme, namely TransCapital Investments Limited. Transaction Capital has been awarded a A- (Long Term, National Scale) and A1- (Short Term, National Scale) credit rating from Global Credit Ratings Co. It is expected that this programme will enable Transaction Capital to gain access to a new capital pool at an attractive cost to fund organic growth and acquisitive activity.

SA TAXI > Continue to source debt via ring-fenced, limited recourse asset-backed funding structures that facilitate investor diversification and avoid crosscollateralisation or risks across businesses, while retaining residual exposure through equity or subordinated financing and servicing obligations. > Continue to access debt capital via the attractiveness of its higher-yielding operational assets; its ability to assess, mitigate and manage risk; and its direct and long-standing relationships with capital providers. > Further diversify access to capital by geography and funder. SA Taxi has accessed more than R1.5 billion of debt funding from the European Development Finance Institution (DFI) capital market since 2010, and it is of strategic significance that it is now broadening its access to other DFI markets as well.

TCRS > Increase the number and size of non-performing loan portfolios it acquires. > Focus on bespoke capital transactions with targeted clients, to apply its excess capital to acquire non-performing loan portfolios to deliver superior risk-adjusted returns. > Exclusive negotiations for the structured and ongoing sales of portfolios with several of its larger clients are underway, designing and delivering innovative, clientspecific capital solutions, including forward-flow book acquisitions and structural outsourcing transactions, in addition to spot book acquisitions.

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STRATEGIC OBJECTIVE DATA AND TECHNOLOGY

Generate in-depth insights from the continuous collection of diverse, accurate and valuable data sets to enable precise decisioning and proactive risk management, and leverage data, analytics and technology within a dynamic servicing platform to drive profitable growth. Both SA Taxi and TCRS generate in-depth insights from the continuous collection of diverse, accurate and valuable data sets to enable precise decisioning and proactive risk management.

LOOKING FORWARD SA TAXI

2016 PROGRESS SA TAXI

TCRS

> Valuable client and market insights developed from overlaying granular telematics, credit, vehicle and other data to enable precise and informed loan origination and collection decisioning and proactive risk management. This data is enhanced as more data is accumulated daily from each minibus taxi, thus contributing to improved credit scoring, route profitability assessments, collection strategies and insurance pricing, all resulting in an improved non-performing loan ratio.

> Expanded its master data universe (MDU), an internal database of 9.2 million unique consumer records, which is expected to create significant operational leverage.

> Valuable client insights gained through the collation of all information relating to an individual provides a holistic, single view of the client.

> The implementation of the dialer together with the enhanced MDU has enabled TCRS to reduce its workforce, closing four of its regional call centres (being Klerksdorp, Mokopane, Polokwane and Rustenburg).

> Developed and implemented a passenger and driver platform for metered taxis, offering passengers multiple booking and payment options.

> An enhanced predictive dialer was implemented alongside the existing preview dialer in the Johannesburg, Durban and Cape Town call centres in July 2016, resulting in increased call centre activity, improved right party contact and an associated increase in payments being observed.

> This together with other aggressive cost containment initiatives contributed to an improved cost-to-income ratio of 77.4% from 82.5%.

> Continue to invest in information technology, data management and analytics (specifically telematics and tracking data) to solidify its leading ability to assess and manage credit, insurance and operational risk, as evidenced by continually improving credit performance. > Further develop innovations in the metered taxi passenger and driver platform, including payment platforms that encourage trips and improve transparency and safety in the industry. > Telematics data is used internally by SA Taxi to facilitate improved credit scoring, route profitability assessments, collection strategies and insurance pricing. This data is now also provided to the taxi owner, giving them a deeper understanding of their business operations and further empowering them as business owners. A further application will be the provision of this data to commuters in the minibus taxi industry, which is already leading practice in the global metered taxi industry.

TCRS > Continued integration of the MDU and dialer with planned workforce management enhancements, is expected to have a positive impact in the 2017 financial year via both a lift in revenue and cost savings. Leads can be generated and products can be distributed directly into its internal database of 9.2 million unique consumers. > Implement technology solutions to drive nextgeneration collection processes, frictionless payment, digital customer engagement, enhanced contactability and data-driven analytics.

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STRATEGIC OBJECTIVE ACQUISITIVE GROWTH

Target quality assets operating within Transaction Capital’s focused market segments that will enhance its capabilities, and whose business model and value can be enhanced through active management. Transaction Capital has a proven track record of creating value through identifying, pricing, acquiring and integrating new businesses, and then developing them to achieve scale and leading positions in their market segments.

MARKET POSITION > Established platforms with robust organic growth.

Transaction Capital applies stringent criteria when evaluating potential acquisitions, to ensure that they will enhance its specialist capabilities and with a view to expanding internationally. Furthermore, it favours a narrow focus on assets whose competitiveness and value can be enhanced by active management within its existing divisions. Although earnings are an important consideration when evaluating potential acquisitions, Transaction Capital is more interested in a business’s ability to be developed and to grow organically, as set out in its investment criteria.

> Delivering predictable, quality earnings with high cash conversion rates. > Niche market participant within Transaction Capital’s existing or adjacent market segments.

CAPABILITIES

> Potential for consolidating market position.

> Strong management team.

> Strong organic and acquisitive growth prospects. > International targets that will grow portfolio, diversify risk and contribute hard currency earnings.

BUSINESS MODEL > Scalable business model with a proven track record. > Focused business with potential for high return on equity. > Driven by systems, data and analytics, and ability to augment these with Transaction Capital’s technology capabilities. > Ease of integration into Transaction Capital’s existing divisions. > Ability to enhance Transaction Capital’s current services to clients. > Scalable business platforms, whose competitiveness and value can be developed and enhanced by Transaction Capital.

> Deep knowledge of its industry and chosen market segments.

INVESTMENT CRITERIA Target quality assets operating within focused market segments that will enable Transaction Capital to enhance its capabilities, and whose business model and value can be enhanced through active management.

> Business platforms that can be developed and scaled. > Intellectual property and expertise that can augment Transaction Capital’s existing capabilities and facilitate access to new verticals.

CULTURE > Alignment with Transaction Capital’s values. > Client- and solutions-orientated. > Entrepreneurial management that are co-invested. > Strong relationships with its clients. > Experienced teams whose skills will benefit Transaction Capital’s.

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2016 PROGRESS Transaction Capital entered into three acquisitions in 2016, in line with its strategy to diversify the group internationally and to apply its capabilities to adjacent market segments. Transaction Capital has applied its stringent investment criteria when evaluating these acquisitions, favouring a narrow focus on quality assets operating within its existing or adjacent market segments. Although these companies are excellent businesses in and of themselves, they also have scalable business models and proven track records, and will benefit from Transaction Capital’s active management, sharing of skills, enhancing technology and monetising its proprietary data to enhance their business model and value.

ACQUISITION OF RECOVERIES CORPORATION GROUP LIMITED (RECOVERIES CORPORATION) Transaction Capital entered an agreement to acquire 100% of the equity in Recoveries Corporation for a maximum purchase consideration of AUD43 million, with AUD33 million being payable upon the acquisition becoming effective and a further potential AUD10 million becoming payable over an earn-out period ending 30 June 2018. This acquisition provides Transaction Capital with a strong entry point into the Australian market and the opportunity to expand geographically into a developed, English-speaking economy. Transaction Capital will thus diversify concentration risk as it earns hard currency-based returns. Founded in 1991 in Melbourne, Australia, Recoveries Corporation provides consumer customer management solutions to a well-diversified blue-chip client base within the government, insurance, banking and finance, utilities and telecommunications market sectors within

Australia. Services include debt recovery solutions (including early stage rehabilitation, late stage collections and legal recoveries), insurance claims recoveries (including claims recoveries and claim file audits), customer services (including reminder calls for pre-collection, courtesy calls, payment arrangement reminders and demand calls), and litigation management via its legal firm, Mason Black Lawyers. Recoveries Corporation employs approximately 600 people across its entire business comprising its Australian operations in Melbourne and Sydney, and offshore call centre and administration operations in Suva, Fiji. Recoveries Corporation is an efficient platform that Transaction Capital intends to develop and scale. The Australian debt collection industry is highly fragmented (with approximately 20 companies accounting for 85% of the market), which provides Transaction Capital with an opportunity to expand acquisitively in Australia. In addition, Recoveries Corporation is exclusively a contingent debt collection agency, receiving fees-for-services. Transaction Capital will apply its analytics, pricing expertise and capital management capabilities to the purchase of non-performing loan portfolios in Australia to facilitate Recoveries Corporation’s expansion into this adjacent market. The purchasing of non-performing loan portfolios comprises the majority of debt recovery activity in the Australian industry and accordingly presents an attractive growth prospect. Recoveries Corporation is a niche market participant with proven technology, strong data analytics skills, and deep industry knowledge operating within the credit risk services market segment. Recoveries Corporation thus possesses intellectual property and expertise that can enhance Transaction Capital’s specialist capabilities thereby assisting Transaction Capital to grow its share in existing market segments and/or facilitate access to new verticals. Recoveries Corporation’s 25 years

of expertise in the insurance recoveries industry will augment Transaction Capital’s competencies and facilitate the growth of its fledgling insurance recoveries offering in South Africa. Following this acquisition, Recoveries Corporation’s founders will retain their executive director positions and remain closely involved in the organic growth and day-to-day operations of the business.

ACQUISITION OF RC VALUE ADDED SERVICES (PTY) LTD (ROAD COVER) During November 2016, Transaction Capital concluded an agreement to acquire a controlling interest in Road Cover. Founded in 2005, Road Cover offers its proprietary value-added services to the mass consumer market on a subscription basis. Subscribing members obtain access, at no additional cost, to high-quality legal and administrative services aimed to assist with the complexity and cost associated with lodging and processing claims against state-run public schemes or state insurance funds, with members receiving 100% of their awarded claims. Services include the administration of Road Accident Fund claims, Compensation for Occupational Injuries and Diseases Act claims and the administration of claims against various road agencies and municipalities relating to damage to a member’s motor vehicle due to poor road conditions. Road Cover’s products are typically embedded in other subscription-based products in the insurance, banking, motor and retail industries, and are also distributed to consumers as a standalone product via direct marketing channels.

The acquisition provides TCRS with a strong entry point into the adjacent value-added services market, where it can leverage its existing competencies to enhance Road Cover’s existing market position. The rationale is to offer Road Cover’s products to the mass consumer market through TCRS’s existing banking, retail, insurance, telecommunications and other clients, thus enabling these clients to generate higher risk-adjusted returns through their engagements with their customers at point of origination. As a separate strategy, leads can be generated and products can be distributed directly into TCRS’s internal database of 9.2 million unique consumers as well as into SA Taxi’s client base. Finally, in addition to enhancing the scale of Road Cover, efficiencies can also be achieved with regard to client origination, management (i.e. payment) and collection processes. Following this acquisition, Road Cover’s founder will retain a 25% ownership of the company and will remain the company’s CEO, responsible for the continued organic growth of Road Cover’s high-quality earnings and the consolidation of this highly fragmented market segment through a build-by-acquisition strategy.

ACQUISITION OF THE BEANCOUNTER FINANCIAL SERVICES (PTY) LTD (THE BEANCOUNTER) Founded in 2008, The Beancounter is a fully outsourced accounting, payroll and tax services provider utilising “software as a service” technology, and is well-positioned in its market segment with solid organic growth prospects. It provides services on a monthly retainer basis and is one of the leading specialists in cloud accounting. The acquisition of The Beancounter will enable TCRS to augment its offering to its SME client base.

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STRATEGIC OBJECTIVE PEOPLE

Develop, engage and reward employees and executives to engender a high-performance culture. All the factors that underpin enhanced performance require the highest calibre of leadership and specialist technical expertise. Transaction Capital seeks to motivate, engage with and develop its employees and executives to foster innovation, cultivate leadership and sustainably maintain a high-performance culture.

Transaction Capital motivates, engages with and develops its employees and executives to foster innovation, cultivate leadership and sustainably maintain a high-performance culture, and prioritises the appointment, development and over time devolvement of authority and responsibility to competent management. Over the years, Transaction Capital has established cohesive leadership teams within its divisions that have assumed ownership and delivered on their strategies. Executives are appropriately qualified and have deep experience within their areas of specialisation. This intellectual capital is typically applied over a much smaller asset base than in larger organisations, with the concomitant expectation of higher performance. Remuneration structures and development programmes for the most senior management are designed to facilitate their attraction, retention, recognition and development. The aim is to preserve sufficient flexibility to support management’s entrepreneurial spirit and innovation, while maintaining management accountability and robust risk processes. The necessary expertise, capabilities and skills of key operational functions are devolved to its divisions. Executives are thus accountable for the performance of their respective business. Strong institutionalised governance, regulatory and risk management practices are maintained at both the group executive office and divisional level. The group executive office continues to possess experienced and specialised leadership with proven entrepreneurial, merger and acquisition, technical, financial and risk management skills, which it applies to augment the skills and capabilities of the divisions. As a significant employer, Transaction Capital acknowledges its role in creating employment opportunities and empowering talent.

PEOPLE PHILOSOPHY Entrepreneurial culture: a sense of ownership and motivation to innovate, within specific business models and risk parameters. Executive capability: executives are appropriately qualified and have deep experience within their areas of specialisation. This intellectual capital is typically applied over a much smaller asset base than in larger organisations, with the concomitant expectation of higher performance. Specialisation: executives, management and

employees are expected to become specialists in their role, whether they are applying broader experience to a narrow focus in a senior management role, collecting for a specific client, or, in SA Taxi’s auto body repair centre, becoming a specialist mechanic for one vehicle type.

Reward: fair remuneration commensurate with the level of skill, experience, seniority and industry practice, and performance incentives where appropriate. Meaningful employment: engender an understanding of the broader social context applicable to each employee’s role, in line with the societal relevance of Transaction Capital’s divisions.

Transaction Capital establishes cohesive leadership teams within its divisions that have the responsibility and requisite level of operational authority to deliver on their strategies.

In TCRS, senior managers employed to deepen the division’s penetration into adjacent market segments apply their professional experience and skills to a narrower market segment compared to their previous roles. For example, specific senior managers focus only on collections in the public or telecommunications sectors, or originations in the insurance sector.

The Transaction Capital Limited Conditional Share Plan, approved by shareholders on 20 October 2016, is a mechanism to attract and retain key employees while providing them with the opportunity to share in the success of the division in which they are employed, and to align their interest with that of shareholders.

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STRATEGIC OBJECTIVE PEOPLE

LEARNERSHIPS > Contact Centre Support NQF level 2 was

2016 PROGRESS TCRS

05

294 promotions of which 172 are women 90% of high-potential employees retained

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72% of employees are women 92% of employees are black*

Key initiatives

SA TAXI

LEADERSHIP PROGRAMMES > Leadership Academy: 72 managers participated

35 promotions of which 34 are black* 93% of high-potential employees retained 41% of employees are women

> Leadership Starter Pack: 68 new managers participated in this management development programme. Of the participants, 44% were women and 90% were black.

82% of employees are black* 33 training programmes conducted, of which 16 are accredited 13 training hours per employee 87% of employees who received training are black* GENDER AFRICAN COLOURED

INDIAN

WHITE

TOTAL 494

MALE

380

10

11

93

FEMALE

264

14

12

56

346

TOTAL

644

24

23

149

840

76%

3%

3% 18%

in the Leadership Academy to enhance their leadership skills. Of the participants, 47% were women, 71% were black and 50% were at junior employee level.

> The DRIVE programme hosted 22 people from across SA Taxi, clustered into cross-functional groups that research a pertinent business topic and present their recommendations to the executive committee. In addition, a number of specialists, senior and middle managers participated in a mentorship programme.

OTHER PROGRAMMES > GO BIG: a rewards programme that recognises exceptional employee contributions to SA Taxi’s success, including social and community contribution and acting in accordance with SA Taxi’s values. > Learnerships: the following two Financial Advisory and Intermediary Services (FAIS) learnerships were conducted during the year: the Harambee Learnership for 12 unemployed learners, all of whom received permanent positions with SA Taxi; and the Insurance Learnership, with six of eight learners completing the programme. > Adult Basic Education and Training Programme: six employees participated in this programme, all of whom were black. > Apprenticeship programme: five black employees are registered on this programme, to gain trade skills with workplace experience within the repair and refurbishment facility.

76 training hours per employee 98% of employees who received training are black* GENDER AFRICAN COLOURED

> Debt Recovery NQF level 4 was attended by 60 employees.

FUNDING PROGRAMMES > The Nisela and Fundza funding programmes provide employees with funding to assist with dependent and personal development. In 2016, 219 employees and 80 dependents participated.

103 training programmes conducted

2 016 P R O G R E S S

completed by 47 employees during 2016, with a further 87 awaiting final moderation for completion.

INDIAN

WHITE

MALE

410

66

84

100

TOTAL 660

FEMALE

1 104

252

294

85

1 735

TOTAL

1 514

318

378

185

2 395

63% 13% 16% 8% Key initiatives LEADERSHIP PROGRAMMES > Levels of Leadership programme: introduced for ‘platinum’ and ‘gold’ level employees during the year (with the intention to roll out to lower employment levels during early 2017), the programme aims to foster a culture of leadership, develop a robust succession pipeline and in so doing, create sound foundations for upcoming leaders. During 2016, 50 employees participated in the programme. > Internal leadership – Generic Management NQF level 4: this learnership was offered to selected managers in the call centres during 2016. Nine managers completed this course and will receive certification from the Services Sector Education and Training Authority (SETA) once externally moderated. > LEAD leadership development programme: 270 leaders across all branches participated in the LEAD programme, which offers 19 modules on management and leadership development. > I Am Accountable programme: 92 leaders participated in the crucial accountability project to equip them with a basic toolkit and understanding for driving a culture of accountability, contributing to building a high-performance culture.

> Disability training: more than R855 000 was spent on up skilling disabled staff in 2016 through accredited training providers.

DEVELOPMENT PROGRAMMES > External graduate development programme: provides workplace experience to

graduates, with four graduates participating in the programme in 2016. Of these graduates, two were provided with permanent employment and one remains on the programme.

> Project Ignite: an internal graduate programme that enables individuals with senior qualifications, but who are currently performing more junior roles, to further their careers within the business. A total of 35 employees are currently participating in the programme.

OTHER PROGRAMMES > Accredited debt recovery programme:

over 800 call centre employees received their Debt Recovery Certification on this accredited skills programme through the Finance and Accounting Services Sector SETA.

> Ambassadors programme: the ambassadors programme gives high-potential employees a platform to grow and make an impact in their branches by giving them the opportunity to be a role model, promote the brand and be the embodiment of company values while inspiring others with their journey to success. 44 ambassadors have participated in the programme since its launch in 2010. > C3 challenge: C3 is an annual competition where call centre agents can win a car based on the competition criteria (exceptional performance and 100% attendance). It is a performance recognition initiative that boosts morale, promotes healthy competition and heightens employee motivation and engagement.

*Black includes African, Indian and Coloured South Africans.

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